Canara Bank · NSE:CANBK
Canara Bank — Q1 FY16 Earnings Presentation
47 slides from Canara Bank's earnings presentation, June 2015
Slide 1: Performance Highlights June 2015
PERFORMANCE HIGHLIGHTS JUNE 2015 www.canarabank.com Page 1
Slide 2: Highlights – June'2015
HIGHLIGHTS – JUNE’2015 Total Business at `7.96 lakh crore, up by 8.74% y.o.y. Total Deposits at `4.72 lakh crore, up by 10% y.o.y. CASA grew by 11.53% y.o.y to `109684 crore and CASA ratio (domestic) improved to 24.62% y.o.y from 24.15% last year. Advances (net) at `3.24 lakh crore, up by 6.96%
Slide 3: Highlights – June'2015
HIGHLIGHTS – JUNE’2015 Stabilized Gross NPA at `13081 crore over March 2015 level of `13040 crore. Gross NPA Ratio stood at 3.98% from 3.89% at March 2015 and 2.67% as at June 2014. Net NPA ratio at 2.74% from 2.03% as at June 2014. Major Cash Recovery at `1056 crore. Highlights Provision Cover
Slide 4: Performance Highlights - Business
PERFORMANCE HIGHLIGHTS- BUSINESS Amt. in ` Crore y.o.y Parameters JUNE’14 SEP’14 DEC’14 MAR’15 JUN’15 Growth (%) Deposits 428976 461193 462450 473840 471877 10.00 Advances 302964 310860 312269 330036 324063 6.96 (net) Business 731940 772053 774718 803876 795940 8.74 C-D Ratio 70.62 67.40 67.52 69.65
Slide 5: Performance Highlights - Overseas Business
PERFORMANCE HIGHLIGHTS- OVERSEAS BUSINESS Amt. in ` Crore y.o.y Parameters JUN’14 MAR’15 JUN’15 Growth % Deposits 22875 29138 29041 26.96 Advances 18319 22693 22205 21.21 Total Business 41194 51831 51246 24.40 Gross Profit 75 270 64 -14.67 Overseas Business constitutes 6.44% of the Global Business w
Slide 6: Performance Highlights - Profitability Q1FY16
PERFORMANCE HIGHLIGHTS- PROFITABILITY-Q1FY16 Amt. in ` Crore y.o.y Parameters Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Gr(%) Total Income 11728 11915 12228 12429 12253 4.47 Total Expenses 9933 10290 10431 10697 10249 3.18 Operating Profit 1795 1626 1797 1733 2004 11.62 Net Profit 807 627 656 613 479 -40.6
Slide 7: Performance Highlights - Expanding the Reach
PERFORMANCE HIGHLIGHTS- EXPANDING THE REACH Particulars JUNE’14 MAR’15 JUNE’15 Y-o-Y incr. Branch Network 5010 5682 5708 698 ATM Strength 6509 8533 9039 2530 Debit Card (In Lakh) 161.51 254.71 271.04 109.53 E-Lounges 147 5701 domestic Population group No. of branches % to total Branches Rural 1811 3
Slide 8: Business Segments
BUSINESS SEGMENTS www.canarabank.com Page 8
Slide 9: Segment Wise Deposits
SEGMENT WISE DEPOSITS Amt. in ` Crore y.o.y Parameters JUN’14 SEPT’14 DEC’14 MAR’15 JUN’15 Growth (%) Total Deposits 428976 461193 462450 473840 471877 10.00 Current 16749 17743 18696 19846 17534 4.69 Saving 81594 86287 86322 93686 92149 12.94 CASA 98343 104030 105019 113532 109684 11.53 CASA (%)Dom
Slide 10: Loans & Advances Segment
LOANS & ADVANCES SEGMENT Amt. in ` Crore y.o.y Parameters JUN’14 SEP’14 DEC’14 MAR’15 JUN’15 Growth (%) Advances (Net) 302964 310860 312269 330036 324063 6.96 Total Priority 103694 108748 112693 118234 121978 17.63 Agriculture 53956 54890 56474 58868 60924 12.91 - Direct Agriculture 45202 46705 4792
Slide 11: Achievement Under Mandated Targets – Priority Sector
ACHIEVEMENT UNDER MANDATED TARGETS – PRIORITY SECTOR Achieved the mandated norms in respect of: Agriculture (19.26% to ANBC against 18% norm) Mandated Norms Weaker Section (12.87% to ANBC against 10% norm) under Priority Sector M&SE (26.32% y.o.y growth against 20% norm) Number of Micro Enterprises
Slide 12: Performance of Retail Advances
PERFORMANCE OF RETAIL ADVANCES Amt. in ` Crore y.o.y Type of Advances JUN’14 SEP’14 DEC’14 MAR’15 JUN’15 Growth (%) Housing loans Direct 13541 14391 15225 16480 17261 27.47 Vehicle loans 3335 3490 3628 3770 3806 14.12 Education loans 5046 5336 5492 5636 5830 15.54 Other Personal Loans 7469 9785 1017
Slide 13: Exposure - Infrastructure
EXPOSURE - INFRASTRUCTURE Amt. in ` Crore y.o.y % Share Parameters JUN’14 SEP’14 DEC’14 MAR’15 JUN’15 Growth Total Adv % Roads 7242 7517 7851 8195 8487 2.62 17.20 Ports 1093 831 827 835 372 0.11 -65.91 Airports 1788 1688 1657 1364 1457 0.45 -18.53 Power (Generation, 42165 43539 45620 45154 45635 14.
Slide 14: Exposure - Power Sector & Aviation
EXPOSURE - POWER SECTOR & AVIATION Amt. in ` Crore % Share y.o.y Parameters JUN’14 SEP’14 DEC’14 MAR’15 Jun’15 Total Growth Adv % -Power Generation 21985 22707 23824 24459 23739 7.33 7.98 -Power Transmission 2166 2205 2126 1533 1566 0.48 -27.71 -Power Distribution 18014 18627 19670 19162 20330 6.27
Slide 15: Exposure to Other Sectors
EXPOSURE TO OTHER SECTORS Amt. in ` Crore y.o.y JUN’14 SEP’14 DEC’14 MAR’15 Jun’15 Growth (%) EXPOSURE TO CAPITAL MARKET Outstanding 2365 2348 2458 2331 2247 -4.99 EXPOSURE TO NBFCs Total 25474 24589 23523 24241 21564 -15.35 Out of above : HFCs 8367 7475 7212 7350 6039 -27.82 Private 11621 12151 112
Slide 16: Financials
FINANCIALS www.canarabank.com Page 16
Slide 17: Profitability - Q1 FY16
PROFITABILITY- Q1 FY16 Amt. in ` Crore y.o.y Q1 Q2 Q3 Q4 Q1 Parameters Growth FY15 FY15 FY15 FY15 FY16 (%) Total Income 11728 11915 12228 12429 12253 4.47 Total Expenses 9933 10290 10431 10697 10249 3.18 Operating Profit 1795 1626 1797 1733 2004 11.62 Provisions 988 999 1141 1120 1525 54.35 Net Prof
Slide 18: Break-up: Income – Q1 FY16
BREAK-UP : INCOME – Q1 FY16 Amt. in ` Crore y.o.y Q2 Q4 Q1 Parameters Q1 FY15 Q3 FY15 Growth FY15 FY15 FY16 (%) Interest on Advances 7905 8005 8064 8093 8101 2.48 Interest on Investments 2625 2681 2792 2826 2850 8.57 Other Interest Income 171 208 196 185 189 10.36 Total Interest Income 10701 10894 1
Slide 19: Break-up: Expenditure – Q1 FY16
BREAK-UP : EXPENDITURE – Q1 FY16 Amt. in ` Crore Q.o.Q y.o.y Q1 Q2 Q3 Q4 Q1 Growth Parameters Growth FY15 FY15 FY15 FY15 FY16 (%) (%) Interest Expenses 8272 8526 8671 8617 8623 0.07 4.25 Interest on Deposits 7702 7964 8213 8146 8180 0.42 6.20 Staff Expenses 1038 1036 1038 1163 1059 -8.94 1.99 Other
Slide 20: Break-up: Non-Interest Income
BREAK-UP: NON-INTEREST INCOME Amt. in ` Crore Q1 Q2 Q3 Q4 Q1 y.o.y Parameters FY15 FY15 FY15 FY15 FY16 Growth(%) Com & Exchange 209 224 226 269 214 2.39 -Of which Bancassurance 11 17 20 11 11 - Profit from Exch. Transactions 263 206 251 61 102 -61.22 Rent – Lockers 66 4 2 3 74 12.12 Dividend Income
Slide 21: Break-up: Provisions - Q1FY16
BREAK-UP : PROVISIONS- Q1FY16 Amt. in ` Crore Provisions for Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1FY16 NPAs 1125 912 952 782 1314 Standard Assets - - 81 73 (61) Provisions on (416) (22) (236) 16 133 Investments Tax 200 185 300 110 165 Restructured & Others 79 (76) 44 139 (26) Total Provision 988 999 11
Slide 22: Earnings Profile
EARNINGS PROFILE (In %) Parameters Q1FY15 Q2FY15 Q3FY15 Q4Y15 Q1FY16 NIM – Domestic 2.42 2.36 2.36 2.36 2.35 NIM – Global 2.30 2.24 2.24 2.25 2.21 ROAA 0.66 0.51 0.53 0.50 0.36 EPS (`)(not Annualized) 17.49 13.59 14.22 13.29 9.63 ROE (Annualized) 13.47 11.78 11.27 11.06 7.01 Cost-Income Ratio (Cumul
Slide 23: Cost and Yield Trends
COST AND YIELD TRENDS (In %) JUN’14 SEP’14 DEC’14 MAR’15 JUN’15 Cost of Deposits 7.44 7.40 7.40 7.38 7.05 Cost of Funds 6.80 6.82 6.83 6.84 6.41 Yield on Advances 10.69 10.69 10.76 10.75 10.22 Yield on Funds 8.80 8.77 8.75 8.78 8.28 Yield on Investments 8.05 8.04 8.02 8.00 7.97 www.canarabank.com Pa
Slide 24: Investment Classification
INVESTMENT CLASSIFICATION Amt. in ` Crore % Share % Share % Share Parameters JUN’14 in Total MAR’15 in Total JUN’15 in Total Portfolio Portfolio Portfolio SLR 11401 86 122508 85% 128197 86% Non SLR 18517 14 22084 15% 20765 14% Total (Domestic) 129918 100 144592 100% 148962 100% Held For Trading 520
Slide 25: Asset Quality
ASSET QUALITY www.canarabank.com Page 25
Slide 26: Asset Quality
ASSET QUALITY Amt. in ` Crore PARTICULARS JUN’14 SEP’14 DEC’14 MAR’15 JUN’15 Gross NPA 8160 9164 10574 13040 13081 Gross NPA Ratio (%) 2.67 2.92 3.35 3.89 3.98 Net NPA 6150 7170 7556 8740 8888 Net NPA Ratio (%) 2.03 2.31 2.42 2.65 2.74 Cash Recovery (cumulative) 2019 3213 4427 5993 1056 Cash Recover
Slide 27: Gross NPA Movement
GROSS NPA MOVEMENT Amt. in ` Crore PARTICULARS JUN’14 SEP’14 DEC’14 MAR’15 JUN’15 Opening Gross NPA ( ` Crore) 7570 7570 7570 7570 13040 Additions 2595 5773 8065 10870 2519 Sub Total 10165 13343 15635 18440 15559 Less: Reduction (a+b+c+d)) 2005 4179 5061 5400 2478 a) Write Off (Including Addn Pruden
Slide 28: NPA Composition
NPA COMPOSITION Amt. in ` Crore Parameters JUN’14 SEPT’14 DEC’14 MAR’15 JUN’15 Gross Advances 305723 313431 315856 334947 328938 Sub-Standard 4167 5416 6055 7076 5827 Doubtful 3993 3748 4518 5964 7254 Loss NIL NIL NIL NIL NIL Provision Coverage Ratio(%) 60.10 58.68 59.44 57.29 59.02 www.canarabank.c
Slide 29: Sector-wise NPA Slippages
SECTOR-WISE NPA SLIPPAGES Amt. in ` Crore Q1 Q2 Q3 Q4 Q1 % to total SECTOR FY15 FY15 FY15 FY15 FY16 Slippages Micro & Small Ent. 631 970 627 496 906 35.98 Agriculture 390 373 316 266 443 17.60 Other Priority Sector 184 200 156 89 204 8.08 Total Priority Sector 1205 1543 1099 850 1553 61.66 Medium In
Slide 30: Sector-wise NPA Outstanding
SECTOR- WISE NPA OUTSTANDING Amt. in ` Crore SECTOR JUN’14 SEP’14 DEC’14 MAR’15 JUN’15 Micro & Small Enterprises 1959 2401 2715 3048 3497 Agriculture 1179 1189 1330 1410 1618 Other Priority Segments 358 402 435 380 486 Medium Enterprises 441 727 825 829 940 Large Industries 3067 3386 4087 5815 4801
Slide 31: Sectoral Contribution of NPA
SECTORAL CONTRIBUTION OF NPA Amt. in `Crore Particulars JUN’14 SEP’14 DEC’14 MAR’15 JUN’15 Gross Advances 305723 313431 315856 334947 328938 Gross NPA 8160 9164 10574 13040 13081 Gross NPA % 2.67 2.92 3.35 3.89 3.98 Priority Sector Advances 103694 108748 112693 118234 121978 PS as % to Gross Advance
Slide 32: Restructured Assets
RESTRUCTURED ASSETS Amt. in `Crore Restructured during the year (Standalone year wise) Particulars F/Y 2013-14 F/Y 2014-15 F/Y 2015-16(Q1) A/C Amount A/C Amount A/C Amount Total 10071 10752 37198 6821 8628 719 Restructured Of which 9904 10231 36565 6130 8190 623 Standard NPA 167 521 633 691 438 96 O
Slide 33: Restructured Assets
RESTRUCTURED ASSETS Amt. in `Crore Particulars F/Y 2013-14 F/Y 2014-15 F/Y 2015-16(Q1) Advances 303431 334947 328938 Restructured Assets 23205 28371 28704 % of Std. Restructured Assets to total Adv 6.67 6.71 7.00 % of Total Restructured Assets to total Adv 7.65 8.47 8.73 CDR 10446 10490 10374 % of C
Slide 34: Sector wise Cumulative Restructured accounts
Sector wise Cumulative Restructured accounts Amt. in `Crore F/Y 2013-14 F/Y 2014-15 F/Y 2015-16 (Q1) Sector A/cs Amt A/cs Amt A/Cs Amt Agriculture 10120 403 13316 470 13411 495 MSME 5663 617 11518 1509 11870 1574 Housing Loans 8475 312 15995 525 16631 566 Large 554 12865 605 25470 624 25681 Advance
Slide 35: Sector wise Restructured accounts for Q1 FY16
Sector wise Restructured accounts for Q1 FY16 Amt. in `Crore Q1 FY16 Sector A/cs Amt. Agriculture 2066 62 MSME 2647 127 Housing Loans 3080 107 Large Advance 21 403 Others 814 20 Total 8628 719 www.canarabank.com Page 35
Slide 36: Restructured Assets
RESTRUCTURED ASSETS Amt. in `Crore FY 2013-14 FY 2014-15 FY 2015-16(Q1) Particulars As on 31.03.2014 As on 31.03.2015 As on 30.06.2015 CDR 10446 10490 10374 NON CDR 12759 17881 18330 Total 23205 28371 28704 www.canarabank.com Page 36
Slide 37: Sector Wise Restructured Accounts
SECTOR WISE RESTRUCTURED ACCOUNTS Amt. in `Crore Name of the Sector As on 30th June 2015 Details of restructured Accounts No. of a/cs Amnt % to cumulative Outstanding Amt. INFRASTRUCTURE (a+b+c+d+e+f+g+h) 138 14578 50.79 Of Which Power POWER (a+b+c+d) 70 10317 35.94 State DISCOMS (a) 27 6560 -- Stat
Slide 38: Capital Adequacy – Basel III
CAPITAL ADEQUACY –BASEL III CRAR of 10.75% at JUNE 2015 Vs. 9% norm CET ratio at 7.65% vs. 5.5% norm Capital Adequacy Tier I ratio at 8.28% vs. 7% norm Ratio Tier II ratio at 2.47% Paid-up Capital at ` 515 crore Sufficient headroom available for raising further capital www.canarabank.com Page 38
Slide 39: Capital Adequacy – Basel III
CAPITAL ADEQUACY – BASEL III Amt. in ` Crore BASEL III Particulars JUN’14 SEPT’14 DEC’14 Mar’15 JUN’15 Risk-weighted 321819 322093 330813 342248 349640 Assets Tier I Capital 23803 23859 23932 27459 28966 CET: 7.12% CET: 7.13% CET: 6.97% CET: 7.37% CET: 7.65% Tier I Ratio% AT I: 0.27% AT I: 0.28% AT
Slide 40: Shareholding Pattern
SHAREHOLDING PATTERN As on June 30, 2015 Govt. 64.48 3.14 FIIs 6.74 15.5 5.17 Indian 15.48 Financial Inst 4.99 64.48 Mutual Funds 5.17 6.74 Govt of India FIIs Resident Individuals Mutual Funds Indian Financial Inst Others Resident 4.99 Individuals Others 3.14 www.canarabank.com Page 40
Slide 41: Pradhan Mantri Jan-Dhan Yojana (PMJDY)
PRADHAN MANTRI JAN - DHAN YOJANA (PMJDY) Opened 68.26 lakh accounts under PMJDY, with a CASA deposit balance of ` 993 crore. Issued 68.26 lakh Rupay Debit Cards, out of which linked 54.25 lakh personalized Rupay Debit Cards to PMJDY accounts. Covered all allotted SSAs/Wards by opening of 807 Bric
Slide 42: Financial Inclusion (FI)
FINANCIAL INCLUSION (FI) Banking facilities provided in all allotted 10049 villages. Total Financial Inclusion branches increased to 807 and 2459 BC agents engaged for financial inclusion activities. 479 Ultra Small Branches (USBs) are also functioning to provide banking access. Financial Inclusi
Slide 43: Important Customer-Friendly Technology Initiatives in Q1FY16
IMPORTANT CUSTOMER-FRIENDLY TECHNOLOGY INITIATIVES IN Q1FY16 Web Package for Social Security Schemes of Government of India released. Facilities to accept subscription of Social Security Schemes of Govt. of India through ATM, SMS and Internet Banking. Facility for sending CASA/Term Deposit balanc
Slide 44: Expanded Clientele Base
EXPANDED CLIENTELE BASE (In Lakhs) Y-o-Y Y-o-Y JUN’14 MAR’15 JUN’15 Increase Growth (%) 6.75 Clientele Base 565 657 675 110 19.47 crore Strong No. of Deposit Clientele A/cs 498 585 600 102 20.48 Base No. of Borrowal A/cs 67 72 75 7.54 11.25 1.10 Crore Clientele accounts added y-o-y. www.canarabank.c
Slide 45: Major Awards/Accolades in Q1FY16
MAJOR AWARDS/ACCOLADES IN Q1FY16 Golden Peacock Business Excellence Award (GPBEA), 2015, by the Institute of Directors, New Delhi. Special Award for the Best Financial Institution – Gold, 2015, by the Federation of Karnataka Chamber of Commerce & Industry (FKCCI), Bengaluru. Order of Merit for
Slide 46: Goals – March 2016
GOALS – MARCH 2016 Thrust on Retail Business & Asset Quality- CASA Retail deposits Goals Retail credit Fee income Containing NPA Improving operational financial ratios- NIM, RoA, RoE and Cost-to-Income. www.canarabank.com Page 46
Slide 47: Thank You
ete! dao L\ canara Bank » THANK vou www.canarabank.com